GIFT City Funds
Non-Resident Indians (NRIs) who have decided to move abroad, often overlook the procedure that is PAN-Aadhar Linking requirement. Although aadhar is not really mandatory for NRIs, the PAN card has the chance of being inoperative if the government is not informed in due time of your residential status.
To avoid problems with banking transactions, mutual fund investments as well as income tax filings, and refund claims, it is necessary for NRIs to update their status with the income tax department. In order to do so the government provides two options: Option A and Option B.
Option A: Intimate the Jurisdictional Assessing Offer (JAO)
Steps:
Intimate Your JAO:
NRIs who are moving abroad or have already moved abroad must notify their Jurisdictional Assessing Officer with regards to their change in residential status: from resident to non-resident.
Find Your JAO Details:
You can locate your JAO through the “Know Your AO” section of the Income Tax Portal: https://www.incometax.gov.in/iec/foportal/
Submit a Request Letter:
This can be done either through email or a physical letter.
The letter can be written via the following format:
“I am an Indian Citizen and Non–Resident Indian (NRI). As per Section 139AA (3) of Income Tax Act 1961, NRIs are exempt from quoting Aadhaar if they do not have Aadhaar. As I do not have Aadhaar, please mark my residential status as NRI in the PAN Database so my PAN does not become inoperative.”
Documents that are Required:
- PAN Card Copy
- Passport Copy showing NRI Visa/Residency Stamp
Option B: Grievance Submission via the Income Tax Portal (Online Method)
If you prefer a method that you would like to go for from the comfort of your home then this one works well:
Steps:
Login to the Income Tax Portal:
https://www.incometax.gov.in/iec/foportal
Go to Grievances:
Select the “Submit Grievances” option from the menu
Select Departments:
“Choose AO”
Choose Category:
- Category: PAN-related Applications
- Sub-Category: Changing of Citizenship flag
Click Continue
Enter the Grievance Description:
In your case paste the same communication suggestion that was given in Option A
Attach the Documents:
- PAN Copy
- Passport Copy for Confirming NRI Status
Submit the Grievance
Why this is important for NRIs
If not done, then it will result in:
- ITR filing being blocked
- TDS/TCS credits will not reflect
- You may face certain issues in banking and investments
- Refunds will not be properly processed.
Despite NRIs being exempted from Aadhar, it is still important for them to update their NRIs status to avoid their PAN card being labelled as inoperative.
By following the two methods above, NRIs can make sure to have uninterrupted access to their financial accounts, investments as well as income tax related services.
